PIA flight operations across country wind down as employees killed in Karachi clash

[phoenixdesi]

Re: PIA flight operations across country wind down as employees killed in Karachi cla

@Silaaj

Govt did not give PIA 6 months to improve. They postponed privatization by 6 months to create a buffer, as they can’t deal with the blowback at this time.
As far as guaranteeing rights, perks, privileges and jobs etc of employees are concerned, its just a smoke screen. For one, no private investor will take over PIA with these terms. Secondly, reduction of workstaff is almost a given, should a private ownership come in. There already is the matter of a Rs.300+ billion running loss, which no investor will take.

Under the current scenario, it is very difficult for the government to privatize the airline. 1) Govt will have to absorb the 300 billion loss. and 2) Govt needs to purge a handsome number of employees through a golden handshake..which will cost the govt another decent chunk of money. The employee purge is what the govt is trying to avoid by passing on the buck to private investors, since it will be politically damaging for PMLN to fire people.

The only reason the govt is rushing through this sale is to appease IMF, as they want to go for another loan after this one expires next year. Otherwise, there is no reason why PIA could not be turned around using tactics similar to what Saad Rafique has done in Railways, as much as I may dislike him.

Half of PIAs fleet sits idle. PIA is already running a loss. Why not slash fares dramatically, which would result in a huge surge in passengers. The losses would still stand, but at least the ridership would increase.
Moreover, there are tons of routes they sold to GCC airlines in return for GCC routes. The GCC airlines are using their routes in Pakistan, but PIA is barely using any of its routes. If they start using those routes with ultra low fares, its just a matter of time before they break even.
All it needs is a good management…an independent board, one that does not entertain political pressure.

thx for an informative and mature post. very helpful

but in the end, i still believe PIA needs to be privatized so that Pakistanis can travel with some peace of mind. As long as it stays with the govt, there will always be probability for it to fall to new lows depending which party is ruling the country. So yes, you may fix it today under govt rule but who knows what will happen tomorrow when a new govt comes…so privatize it but do it in an open, transparent and mature way